Market Report

ANCHOR:
For our market report today, let's take a look at a report on how Japan's economy is doing. Already in a recession, business turnover for some industries, like cars, was the worst on record. it was also a bad month for department and retail stores. Here's that report.

STORY:
The slowdown in the world's No.2 economy has been staggering and nowhere more so than at its sales counters.

Already in recession, December turnover for businesses like cars was the worst on record, while some of its $72-billion department and retail stores saw the biggest monthly drop ever.

Aeon, Japan's No.2 retailer, slashed its outlook Wednesday and warned of its first net loss in seven years, while Takeshi Niinami, CEO of chain Lawson, says 2009 will be harsh.

[Takeshi Niinami, CEO of chain Lawson]:
"I think the new government in the U.S. will pick up the world economy to some extent towards the end of the year. So, I believe consumer spending of this country will pick up toward the end of this year -- a little
bit."

Japanese consumers are sharply cutting back spending except for necessities to weather the tough economic time.

Travel, even with a strong yen, is seen as a luxury, and JAL CEO Haruka Nishimatsu says it will take some time to revive air demand.

[Haruka Nishimatsu, CEO JAL]: "Until the end of 2009 the outlook is grim, but there is a sense among
U.S., Japanese, Chinese and European governments that fiscal measures are needed, so that may have some impact."

JAL and Japanese retailers are trying their own pump-priming moves, cutting prices and using new year campaigns, such as the traditional "lucky bags", to lure customers back for all of 2009.

Category:

News & Politics

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• ntd
• Market
• Report
• Company
• Asia
• Japan
• economy
• recession